Tesla Motors – The Future Ahead

Well, who doesn’t know Elon Musk – the real-life inspiration to the character of Tony Stark (Iron Man). He is probably this century’s most innovative tech entrepreneur – PayPAl, Tesla Motors, SpaceX, SolarCity, Hyperloop. For many years, many tinkered with electric vehicles to replace the gas-guzzling conventional models. Everyone knew its importance – green energy, sustainability, advances in energy storage. But, building something on paper is one thing, delivering the same is another.

A small company has managed something where giant vehicle veterans have failed. In 2005, worldwide EV sales were measured in hundreds. In 2015, the threshold of 1 million EV on roads worldwide was exceeded.  Tesla Motors has sold almost 164,000 electric cars worldwide since making it the second largest global plug-in car manufacturer. Going Green was positioned as a style statement by delivering affordable EV with no compromise on design and features – especially AutoPilot. Tesla’s supercharging network is often quoted as being one of its greater advantages in the EV market – achieved by leveraging the tech from SolarCity, which Elon Musk had bought for a whopping $3bn. Tesla has installed a network of high-powered Superchargers across North America, Europe and Asia for Tesla cars.

The company also operates a Destination Charging program, under which shops, restaurants and other venues are offered fast chargers for their customers. It started by making an electric sports vehicle – Roadster, which was well received due to its stupendous performance. Tesla then came up with model S followed by model X – an upbeat crossover SUV, which was priced premium, whose profits were used to aggressively expand its facilities which culminated in creating an affordable EV – model 3. Model 3 took 232,000 reservations in 2days. Unlike many other manufacturers, Tesla produces many of its components and not just does assembly – vertical integration. In this regard, it has built Giga-Factory. There would be an exponential rise of this category in the future as governments are taking clean energy initiatives and giving subsidies. Tesla now seems to be a name synonymous to EV segment. It initially bore a lot of losses, as is expected of a disruptive tech company. Nonetheless, it became a positive cash flow this year, quite soon one can say.

EV Sales

Sources : http://insideevs.com/tesla-model-x-grabs-6-of-u-s-large-luxury-suv-segment-in-q3/

 

 

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About the Author:

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Niteen is a second-year student at IIM Calcutta. He is a native of a remote village in the state of Karnataka. He is an obsessive-compulsive reader. True to that,  he considers himself a wikiholic and has a knack for variegated consortium of subjects. Surfing the internet on various issues, especially History, International affairs and Politics is invigorating. Part of InsideIIM student team.

Niteen Bali

Student at Indian Institute of Management, Calcutta

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